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ETHIOPIA 

COMMERCIAL  AND  ECONOMIC 
SURVEY 


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J.  LODERPARK  ; 

AMERICAN  VICE  CONSUL,  ADEN,  ARABIA 


Trade  Information  Bulletin  No.  476 


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OF  COMMERCE 


BUREAU  OF  FOREIGN  AND 
DOMESTIC  COMMERCE 


Trade  Information  Bulletin  No.  476 


Price,  10  Cents 

FOREWORD 

The  increased  international  interest  recently  shown  in  the  Empire 
of  Ethiopia,  formerly  known  as  Abyssinia,  warrants  a  review  of  con¬ 
ditions  in  that  little  known  country  of  approximately  10,000,000 
inhabitants — a  region  which  is  one  of  the  few  productive  portions  of 
the  African  continent  in  which  no  modern  development  projects 
have  been  undertaken  during  recent  years,  although  some  are  under 
consideration.  The  country’s  situation  as  a  sovereign  nation  places 
it,  however,  in  a  somewhat  different  relation  to  foreign  capital  from 
that  of  its  neighboring  areas  that  are  parts  of  the  colonial  systems 
of  European  powers. 

Although  the  political  independence  of  Ethiopia  has  been  recog¬ 
nized  by  Great  Britain,  France,  and  Italy  since  1906,  and  that  coun¬ 
try  under  its  Regent,  Ras  Taffari  Makonnen,  has  been  a  member  of 
the  League  of  Nations  since  1923,  nevertheless  the  modern  economic 
developments  there  have  been  largely  accomplished  by  foreign 
enterprise. 

The  country’s  resources  remain  still  largely  unexploited  and  the 
industrial  development  is  negligible.  Although  there  are  reported 
to  be  rich  resources  of  rubber,  coal,  copper,  silver,  sulphur,  potash, 
mica,  gold,  and  iron,  only  the  last  four  have  so  far  been  extracted 
commercially,  and  these  only  to  a  slight  extent.  Ethiopia  may  be 
said  to  represent,  therefore,  an  almost  virgin  field  for  productive 
effort,  and  with  its  increasing  economic  development  and  augmented 
purchasing  power,  it  represents,  as  well,  a  new  and  promising 
market  for  the  products  of  the  industrial  world. 

Julius  Klein,  Director 
Bureau  of  Foreign  and  Dcnnestic  Gorwmerce. 


May,  1927. 


ETHIOPIA:  COMMERCIAL  AND  ECONOMIC  SURVEY 

INTRODUCTION 

Ethiopia,  formerly  loiown  as  Abyssinia,  is  an  inland  empire  sepa¬ 
rated  from  the  west  coast  of  the  Red  Sea  and  the  Gulf  of  Aden  by 
the  Italian  colony  of  Eritrea  and  French  and  British  Somaliland, 
and  from  the  Indian  Ocean  by  Italian  Somaliland.  It  is  bounded 
by  Kenya  Colony  on  the  south  and  by  the  Anglo-Egyptian  Sudan 
on  the  west.  It  is  made  up  of  several  ancient  kingdoms  and  formerly 
independent  or  semi-independent  political  entities,  which  constitute 
in  part  the  modern  provincial  divisions.  The  nominal  ruler  is  the 
Empress  Waizeru  Zauditu,  crowned  in  1916,  but  the  actual  govern¬ 
ment  is  largely  in  the  hands  of  her  son,  the  regent,  Ras  Taffari. 

In  1923  Ethiopia  was  admitted  to  membership  in  the  League  of 
Nations.  Since  1906,  when  a  special  agreement  was  signed  between 
them,  Great  Britain,  France,  and  Italy  have  recognized  the  independ¬ 
ence  and  integrity  of  the  country,  at  the  same  time  guaranteeing  not 
to  intervene  in  Ethiopian  internal  affairs,  nor  to  act  so  that  indus¬ 
trial  concessions  granted  in  the  interest  of  any  one  of  them  might 
injure  the  others. 

Of  the  country’s  estimated  population  of  about  10,000,000,  only 
about  one-third  are  Ethiopians,  a  Christian  people  of  Hamitic  origin 
with  a  Semitic  admixture.  More  than  half  the  total  population  are 
Gallas,  pastoral  and  agricultural  people,  some  of  whom  are  Chris¬ 
tian,  some  Mohammedan,  and  some  pagan.  Somalis  inhabit  the 
Somaliland  Plateau  in  the  southeast;  Falashas,  of  Jewish  religion, 
comprise  an  important  part  of  the  population  in  the  northeast;  and 
a  considerable  number  of  negroes  inhabit  the  southwest  districts. 

The  capital  and  seat  of  government,  Addis  Ababa,  has  a  popula¬ 
tion  of  about  65,000,  of  whom  perhaps  1,000  are  foreign  residents, 
chiefly  British  Indians,  Arabs,  Greeks,  and  Armenians.  The  only 
other  important  towns  are  the  walled  city  of  Harrar  and  the  former 
railroad  terminus,  Diredawa.  Each  of  these  has  a  population  of 
from  30,000  to  40,000.  Addis  Ababa  and  Harrar  are  the  only  cities 
having  schools,  in  all  of  which  the  teaching  is  done  by  the  clergy. 
Recently,  a  new  school  has  been  opened  in  the  capital  with  French 
professors  for  the  sons  of  noblemen,  a  few  of  whom  are  sent  to  Egj^pt 
for  further  instruction. 

Addis  Ababa  is  connected  with  Harrar,  Jibuti  (French  Somali¬ 
land)  and  Massawa  (Eritrea)  by  telegraph,  and  by  telej^hone  with 
a  dozen  Abyssinian  towns,  including  Gambeila,  the  western  trading 
station  leased  to  the  Sudan  Government;  Sharada  in  the  southwest; 
and  Derra  in  the  north.  The  country’s  few  miles  of  metaled  roads 
are  also  in  the  vicinity  of  the  capital,  all  other  roads  being  scarcely 
more  than  tracks  or  caravan  routes. 

In  addition  to  the  products  discussed  below,  Ethiopia  is  reported 
to  have  forests  rich  in  rubber  and  other  valuable  trees.  Coal,  copper, 
silver,  and  sulphur  have  also  been  found  but  have  not  as  yet  been 
exploited. 

45624—27 


(1) 


2 


INDUSTRIAL  AND  AGRICULTURAL  PRODUCTION 

The  character  of  Ethiopia’s  import  trade  indicates  that  the  native 
people  in  their  present  stage  of  economic  development  are  incapable 
of  producing  even  their  bare  necessities.  The  exported  products, 


moreover,  are  only  those  of  a  pastoral  and  crudely  agricultural  Coun¬ 
try.  For  example,  much  of  the  coffee  is  wild.  Hides  and  skins  are  the 
casual  by-products  of  animals  raised  primarily  for  food,  and  would 
be  wasted  for  the  most  part  if  there  did  not  happen  to  be  a  foreign 


3 


demand  for  them.  Wax  is  gathered  from  wild  honeycombs  and 
ivory  is  obtained  from  wild  animals  killed  mainly  for  that  valuable 
material.  Grain,  of  course,  is  cultivated,  but  in  a  primitive  manner. 
Under  the  heading  “  Miscellaneous  ”  in  the  tables  given  below  are 
included  various  other  agricultural  products,  such  as  potatoes,  beans, 
and  other  vegetables.  Civet  production  might  properly  be  called  an 
industry,  since  it  is  achieved  by  organized  breeding  farms  of  civet 
cats.  Gums,  again,  such  as  gum  arabic,  gum  tragacanth,  and  myrrh, 
are  obtained  by  the  usual  simple  process  of  tapping  the  trees  of  the 
countryside. 

Ethiopia  can  not,  therefore,  be  called  an  industrial  country,  except 
in  the  most  strictly  limited  sense  of  the  word,  despite  its  reputation 
for  having  potentialities  of  such  an  amazing  extent  that  it  might  well 
become  one  of  the  most  productive  countries  in  the  world.  Not  only 
are  its  exports  those  of  a  pastoral  rather  than  an  industrial  com¬ 
munity,  but  there  is  not  even  any  organized  system  of  production  of 
any  of  these  export  commodities. 

COFFEE  GROWING 

The  production  of  coffee  is  the  unique  example  of  an  increasing 
effort  to  cultivate  this  commodity.  The  output  for  1924  was  three 
times  as  great  as  the  average  for  the  preceding  14  years.  Coffee 
culture  is  especially  noteworthy  in  the  Province  of  Harrar,  the 
quality  of  that  product  being  very  similar  to  Mocha,  or  Arabian  cof¬ 
fee.  It  is  exported  both  via  the  Sudan  and  the  French  railway.  Its 
prices  keep  level  with  those  prevailing  in  Aden,  which  represent  the 
prices  obtainable  abroad.  So  far  as  the  American  consumer  is  con¬ 
cerned,  Abyssinian  coffee  is  the  same  as  Arabian,  such  names  as 
“  Harrari,”  “Abyssinian  Longberry,”  being  merely  names  in  com¬ 
mon  use  in  the  trade.  The  Ethiopians  are  not  great  coffee  drinkers, 
and  are  willing  to  export  most  of  the  coffee  produced  in  their  country. 

Wild  coffee  without  any  but  the  most  casual  attention  will  grow  in 
the  country  in  abundance,  and  if  cultivated  by  the  most  approved 
methods  may  one  day  be  produced  in  enormous  quantities  and  become 
an  important  rather  than  an  incidental  part  of  the  world’s  coffee 
supply. 

HIDE  AND  SKIN  INDUSTRY 

The  hides  and  skins  of  Ethiopia  are  the  best  obtainable,  excepting 
those  from  the  blackbird  sheep  of  Arabia.  The  quality,  depending 
largely  as  it  does  upon  pasturage  and  water,  has  every  opportunity 
in  Abyssinia  to  be  the  best.  Most  of  the  Abyssinian  hides  and  skins 
appearing  on  the  Aden  market  are  of  the  “butcher”  grade,  i.  e., 
taken  from  animals  killed  for  food.  The  increase  in  1924  over  pre¬ 
vious  years  was  sufficient  to  show  a  general  improvement  in  pastur¬ 
age,  rainfall,  and  prosperity  in  Abyssinia.  Recent  unofficial  reports 
indicate  that  1925  was  the  best  year  on  record  for  Ethiopia’s  hide 
and  skin  output,  exceeding  the  metric  tonnage  of  1924  (7,642  tons) 
by  at  least  30  per  cent.  Prices  are  still  too  high  for  American 
buyers,  but  this  is  owing  to  active  competition  for  good  skins  in 
Europe  and  America  and  to  the  dependence  of  the  Abyssinian  trade 
upon  Aden,  the  center  of  activity. 


4 


GRAIN  PRODUCTION 

Abyssinian  inillett  (diirra),  wheat,  and  barley  have  been  exported 
in  important  quantities  only  since  1915  to  supply  Red  Sea  and 
east  African  ports.  It  was  only  the  existence  of  war  conditions 
that  brought  about  the  exportation  of  this  most  abundant  of  Abys¬ 
sinian  field  crops,  since  prior  to  1915  the  export  was  restricted  by  the 
Government.  It  was.  apparently,  between  1910  and  1915  that  this 
restriction  was  in  force,  because  768  tons  were  exported  via  Jibuti 
alone  in  1910,  one  third  of  that  quantity  in  1911,  none  in  1912  and 
1913,  and  79  in  1914.  Exports  have  varied  greatly  since  1915,  and 
here  again  1924  was  a  record  year  (1,579  metric  tons  having  been 
shipped  via  Jibuti).  Exports  via  Jibuti  were  supplemented  by  those 
into  and  through  the  Sudan  in  unknown  but  certainly  less  quantities. 

WAX  COLLECTING 

Although  much  of  the  beesAvax  of  Ethiopia  is  the  result  of  bee¬ 
keeping,  it  is  believed  that  more  than  half  of  the  loiOAvn  output  is 
from  wild  hives.  The  wax  is  shipped  to  Aden  in  large  blocks  weigh¬ 
ing  from  50  to  100  pounds  each,  ready  for  further  export.  The 
quality  of  the  Avax  is  A’ery  good  and  found  generally  acceptable  in 
the  United  States. 

IVORY  HUNTING 

lAmry,  because  of  its  rarity  and  great  value,  is  listed  as  a  separate 
item,  since  Ethiopia  is  distinctiA^e  for  its  steady  and  rather  large 
production  of  the  substance.  It  is  obtained  manily  by  Ethiopians,, 
who  are  very  proud  of  their  proAvess  and  skill  in  hunting  wild 
animals,  including  those  bearing  ivory.  As  shoAvn  in  the  tables 
below,  ivory  production  varies  from  year  to  year,  the  pre-war  and 
postwar  production  being  about  equal,  although  there  has  been  a 
falling  off  in  recent  years.  It  seems  that  there  is  a  scarcity  of  large 
tusks,  only  those  weighing  up  to  50  pounds  being  available  for 
export.  These  are  not  nearly  so  A^aluable  as  the  larger  ones,  owing 
to  the  holloAv  half,  Avhich  severely  limits  the  available  ivory  in  the 
tusk.  It  is  not  the  gross  weight  of  ivory  but  the  net  weight  of  solid 
ivory  that  gives  it  value. 

MINING  INDUSTRIES 

Deposits  of  iron  exist  in  several  parts  of  Ethiopia  but  have  been 
used  by  the  natives  only  for  the  manufacture  of  more  or  less  primi¬ 
tive  tools  and  weapons — spears,  kniA^es,  hatchets,  etc. 

Placer  gold  mining  and  washing  is  carried  on  by  the  natives  in 
some  of  the  eastern  districts,  Avhere  gold  is  found  in  several  of  the 
riA^er  beds.  Exports  average  in  value  about  $200,000  a  year,  but  it 
is  reported  that  if  the  quartz  deposits  said  to  exist  in  the  country 
were  exploited,  production  would  reach  much  larger  proportions. 

Since  1911  the  concession  for  the  exploitation  of  extensive  depos¬ 
its  of  potash  salts  in  northeastern  Ethiopia,  near  Eritrea,  has  been 
held  by  an  Italian  company.  A  certain  amount  of  development  and 
exportation,  chiefly  to  Italy,  has  been  carried  on  by  this  company. 

Concessions  are  held  by  an  American  company  for  the  exploita¬ 
tion  of  mica  mines  in  four  sections  of  Ethiopia :  In  Laka  and  Walloga 
in  the  west;  in  the  country  of  the  Ogaden  near  Somaliland;  in  the 


5 


vicinity  of  Harar ;  and  in  the  vicinity  of  Anssa  near  French  Somali¬ 
land.  Mining  has  been  begun  in  the  section  between  Harar  and 
Jijiga,  where  the  mica  is  reported  to  be  of  excellent  quality,  and 
exportation  was  begun  in  1923.  The  deposits  are  abundant,  but  the 
exploitation  has  so  far  been  somewhat  handicapped  by  difficulties 
of  transportation,  since  the  mines  are  separated  from  the  nearest 
railway  point,  Diredawa,  by  about  100  miles  of  very  rough  country. 
The  possibility  of  an  alternative  export  route,  however,  has  been 
suggested,  through  British  Somaliland  to  the  port  of  Berbera,  for 
which  only  40  miles  of  new  road  would  have  to  be  constructed. 

DEMAND  FOR  FOREIGN  PRODUCTS 

It  is  evident  from  the  import  figures  that  the  principal  needs  of 
Ethiopia  from  abroad  are,  in  order  of  importance,  salt,  cotton  goods, 
kerosene,  sugar,  empty  bags,  hardware,  wines,  and  glassware.  The 
Austrian  Maria  Theresa  dollars  are  imported  in  great  numbers,  but 
are  not  mentioned  separately.  They  will  be  dealt  with  under  a 
separate  heading. 

SALT 

Salt  takes  the  lead,  because  of  the  extreme  dearth  of  it  in  Ethiopia. 
There  are  certain  occurrences  of  natural  rock  salt  in  the  country,  but 
these  are  few,  while  the  quality  is  poor  and  there  are  no  means  of 
refining  it.  Ethiopia,  being  completely  landlocked,  can  not  produce 
salt  from  sea  w^ater  and  must  depend  mainly  upon  foreign  sources. 
Salt,  as  a  result,  is  so  precious  that  it  is  used  as  money  throughout 
Ethiopia.  The  production  of  salt  bars  of  convenient  sizes  for  money 
has  become  an  industry,  in  the  hands  of  a  small  group  of  Greeks,  who 
are  said  to  be  making  a  substantial  profit.  The  bars  are  about  12 
inches  long,  slightly  tapered  at  both  ends,  are  molded  in  hard  crys¬ 
talline  masses  and  protected  from  chipping  by  a  binding  of  thongs. 
The  values  of  the  bars  of  salt  correspond  with  equivalents  in  Maria 
Theresa  dollars. 

TEXTILES 

Cotton  goods,  still  known  as  “American!,”  in  spite  of  the  fact  that 
the  lower  priced  Japanese  products  have  captured  the  Ethiopian 
market  from  the  Americans  who  dominated  it  several  years  ago, 
form  the  second  most  important  item.  Imports  of  4,438  metric  tons 
in  1924  (no  other  measurement  is  available)  indicate  a  recovery  of 
the  market  from  a  postwar  decrease.  The  imports  of  this  com¬ 
modity  have  not  varied  much  from  an  annual  average  of  about  4,000 
metric  tons,  and  were  not  affected  by  the  war. 

KEROSENE 

American  kerosene,  once  dominant,  lost  prestige  when,  about  four 
years  ago,  British  brands  were  introduced  at  cut  prices.  The  Ameri¬ 
can  is  still  regarded  as  the  best  in  quality,  but  its  price  has  been 
maintained  at  a  proportionately  high  level.  Lately,  however,  Ameri¬ 
can  marketers  have  altered  their  policy,  and  are  now  endeavoring  to 
recover  the  lost  Red  Sea  markets,  including  Ethiopia.  They  are 
fairly  certain  of  success,  because  their  kerosene  is  famous  for  its 
uniform  quality,  and  a  very  small  reduction  in  price  has  enabled 
American  kerosene  again  to  compete  with  the  British  product. 


6 


JUTE  BAGS 

Empty  bags  made  of  jute,  imported  for  the  most  part  from 
India,  are  constantly  in  demand  for  animal  transportation.  The 
year  1924  was  the  record  year  since  figures  have  been  compiled,  its 
total  imports  of  bags  being  434  tons,  against  the  next  highest  total 
of  264  tons  in  1922.  The  use  of  bags  is  universal  in  Ethiopia,  as 
they  are  constantly  required  for  packing  merchandise  on  every  Ijeast 
of  burden. 

>  HARDWARE 

Hardware  is  imported  chiefly  from  Germany  and  Austria.  This 
heading  includes  lanterns,  locks,  hinges,  bolts,  nails,  and  every¬ 
thing  in  common  use  that  is  made  from  iron,  copper,  and  brass. 
The  cheapest  only  of  each  kind  of  hardware  is  sold  in  Ethioj^ia. 
There  is  no  apparent  requirement  for  anything  fine  or  elaborate  in 
this  category,  even  the  best  buildings  of  the  natives  being  most 
crudely  constructed.  It  is  an  open  market  for  American  hardware, 
and  the  cheaper  American  manufactures  should  figure  prominently, 
if  actively  promoted.  Consumption  at  present  is  small,  although 
the  1924  imports  had  not  been  equaled  since  1914.  The  market  could 
probably  be  developed  to  much  greater  importance  if  personally 
studied  by  an  American  representative  of  hardware  manufacturers. 
Two  hundred  tons  of  metal  ware  in  a  year  is  not  a  large  consump¬ 
tion  for  10,000,000  people. 

GLASSWARE 

Closely  allied  to  hardware  is  glassware,  including  tumblers,  table¬ 
ware  in  general,  lamp  globes,  bottles,  window  glass,  etc.  The  in¬ 
creased  demand  for  glassware  in  Ethiopia  is  startling.  Imports 
dropped  from  123  tons  in  1914  to  45  tons  in  1915,  with  smaller  pur¬ 
chases  during  and  after  the  war.  The  year  1924  marks  a  very 
substantial  recovery,  which  gives  promise  of  further  increases  as 
time  goes  on.  Most  of  the  glassware  in  Ethiopia  is  sold  at  retail  in 
the  bazaars  of  the  larger  cities.  The  venders  spread  their  wares  on 
the  ground,  with  or  without  a  roof  or  a  shop,  and  distribution  to  the 
surrounding  country  is  accomplished  by  the  purchasers,  who  travel 
from  afar  to  the  marts  on  regular  market  days.  The  leading  arti¬ 
cles  of  glassware  required  in  Ethiopia  are  tumblers  and  lantern 
glass.  No  person  is  permitted  out  at  night  without  some  kind  of 
light.  Very  little  glassware  is  obtainable  in  the  market  and  the 
prices  are  rather  high.  There  is  a  good  opportunity  for  American 
glassware. 

SUGAR 

Sugar  is  a  constant  requirement,  being  imported  mostly  from  Java. 
It  is  not  produced  in  the  country,  yet  imports  for  the  whole  country, 
as  seen  below,  amounted  to  only  494  metric  tons  in  1924 — a  total 
rarely  equaled  in  any  previous  year. 

WINES  AND  LIQUORS 

Wines  and  liquors,  beer,  and  rectified  alcohol  are  universal  re¬ 
quirements  in  Ethiopia,  but  most  of  the  foreign-made  beverages  are 
much  too  expensive  for  the  natives,  who  are  obliged  to  content  them¬ 
selves  with  two  staple  homemade  drinks,  namely,  “tej,”  a  mild. 


7 


diluted  form  of  beer  which  is  made  from  honey  in  nearly  every 
household,  and  a  white  liquor  of  great  potency  made  from  raisin 
skins.  Hence  most  of  the  imported  beverages  are  consumed  by 
foreigners  in  Ethiopia. 

FOREIGN  TRADE 

Ethiopia's  foreign  trade  has  never  been  nearly  so  great  as  the 
reputed  wealth  of  the  country  would  seem  to  justify.  The  balance 
of  trade  has  long  been  unfavorable,  and  changed  for  the  first  time  in 
1924,  when  exports  exceeded  imports  by  5,192  metric  tons.  The 
recurrent  import  surplus  is  attributable  to  the  lack  of  productive 
industry  in  the  country.  Although  no  assertion  can  be  ventured 
regarding  future  commercial  developments,  it  is  an  undoubted  fact 
that  with  a  little  effort  to  exploit  the  soil  in  a  modern  manner  and  to 
develop  the  country’s  untouched  resources  an  export  surplus  could  be 
established  and  the  total  volume  of  trade  considerably  increased. 

The  tables  of  imports,  exports,  and  prices  included  in  the  present 
report  are  believed  to  be  the  first  definite  statements  yet  obtainable. 
They  cover  the  total  trade  of  Ethiopia  via  the  port  of  Jibuti  since 
1910  and  via  the  Anglo-Egyptian  Sudan  for  the  years  1922  to  1924, 
inclusive.  The  accuracy  of  the  figures  can  not  be  guaranteed  but 
they  are  useful  for  purposes  of  comparison  and  are  considered  to 
represent  a  very  close  estimate  of  the  country’s  trade. 

Although  caravans  carry  on  a  large  trade  with  the  interior,  the 
chief  route  for  Ethiopian  foreign  commerce  is  the  Franco-Ethiopian 
Railway  from  the  capital  to  the  French  Red  Sea  port  of  Jibuti. 

TRADE  VIA  JIBUTI 

The  tables  given  below  show  the  exports  and  imports  via  Jibuti 
since  1910.  As  stated  above,  these  figures  are  not  official  statistics, 
but  since  they  are  from  a  reliable  source  they  may  be  relied  upon  as 
having  a  very  fair  degree  of  accuracy.  In  considering  them,  how¬ 
ever,  it  should  be  remembered  that  they  do  not  cover  all  Ethiopian 
trade,  but  only  that  carried  on  through  the  port  of  Jibuti.  The 
more  detailed  commodity  tables  for  the  years  1923  and  1924  similarly 
cover  only  the  trade  through  Jibuti. 


Tonnages  of  Principax.  Imports  Into  Abyssinia  via  the  Franco-Ethiopian 

Railway  Since  1910 

[In  metric  tons] 


Year 

Salt 

Kero¬ 

sene 

Wines 

Liq¬ 

uors 

Sugar 

Beer 

Al¬ 

cohol 

Glass¬ 

ware 

Hard¬ 

ware 

Bags, 

empty 

Cot¬ 

ton 

goods 

All 

other 

items 

Total 

iftin 

1  484 

4Qn 

117 

350 

2, 976 

22,844 

28,  261 

iftn 

1  Qlfi 

585 

947 

604 

3, 649 

30, 358 

37, 362 

1019.  * 

1  Qfifi 

580 

875 

477 

4,219 

12,071 

19, 678 

fiQ4 

8fi7 

857 

1, 138 

4,735 

33,  763 

43, 464 

1914 _ 

4',  702 

755 

109 

603 

110 

127 

123 

408 

233 

6,117 

1,773 

15,060 

1915 . 

7, 202 

1,306 

102 

240 

439 

56 

33 

45 

74 

245 

4,642 

3,  048 

17, 432 

1916 _ 

7,524 

■311 

59 

125 

494 

9 

8 

16 

153 

233 

3, 994 

1,674 

14,  580 

1917 . 

14,  087 

698 

49 

64 

180 

9 

11 

41 

191 

3,  572 

113 

20,  022 

1918 . 

13, 886 

38 

47 

140 

346 

14 

6 

13 

14 

207 

4, 116 

1,942 

20,  769 

1919 . 

9, 117 

299 

77 

104 

109 

4 

66 

4 

17 

115 

3,586 

1,735 

15, 233 

1920 . 

12,841 

453 

282 

265 

322 

64 

1 

72 

110 

191 

3, 336 

3, 421 

21, 358 

1921 . 

5, 900 

308 

65 

55 

256 

23 

5 

33 

98 

220 

2,  543 

2,029 

11,  535 

1922 _ 

7, 899 

1, 183 

67 

44 

338 

46 

21 

43 

118 

264 

2,505 

1,753 

14, 281 

1923 . 

15',  801 

412 

84 

84 

323 

45 

5 

73 

173 

226 

3, 381 

2,  359 

22,  966 

1924 _ 

8;i57 

657 

147 

82 

494 

61 

12 

131 

199 

434 

4, 438 

3,  881 

18,  693 

7 


8 


Tonnages  of  Principal,  Exports  from  Ethiopia  via  the  Franco-Ethiopian 

Railway  Since  1910 


[In  metric  tons] 


Year 

Coffee 

Hides 

Wax 

Grain 

Ivory 

All  other 
items 

Total 

1910 . . . 

3,766 

2,  810 

422 

768 

64 

867 

7, 687 

1911 . . . . . . 

3, 043 

434 

233 

69 

4,747 

8, 520 

1912 . . . 

3,541 

3,115 

408 

51 

309 

7, 424 

1913. . . 

4,446 

4, 105 

637 

51 

585 

9,824 

1914 . . 

3, 455 

4,301 

234 

79 

14 

280 

8,363 

1915 . . . . 

4,807 

4,673 

355 

828 

4 

217 

10,884 

1916 _ _ _ _ 

4,206 

3, 193 

355 

173 

22 

1,062 

9,  011 

1917 . . . 

4, 744 

6, 743 

392 

617 

6 

1,663 

14, 165 

1918. . . 

3,253 

8,217 

185 

505 

1 

3, 107 

15, 268 

1919 . . 

3,307 

8,346 

369 

764 

20 

1,990 

14, 796 

1920 . . 

2,993 

4,671 

226 

1,415 

26 

1,865 

11, 196 

1921 . . . . . . 

4, 027 

2,  229 

166 

1,417 

24 

2, 497 

10, 360 

1922 . . . . . 

6,630 

3,  740 

277 

725 

12 

2, 106 

13, 490 

1923 . . . . 

5,517 

6, 902 

220 

742 

11 

2, 191 

15,583 

1924 . . 

12,043 

7,  642 

335 

1,677 

17 

2, 271 

23,886 

Imports  into  Ethiopia,  by  Articles,  1923  and  1924 


[In  metric  tons] 


Item 

1923 

1924 

Item 

1923 

1924 

Cotton  piece  goods  _ 

2,513 

3,332 

Rice _ _ 

89 

98 

Cotton  *  piece  goods,  other 

Grain . 

23 

35 

kinds _ 

868 

1,106 

Tinware _ _ _ 

173 

199 

Kerosene  oil _ '... 

412 

657 

Glassware _ 

73 

131 

Salt  _ 

15, 801 

8, 157 

Bags,  empty _ 

226 

434 

Sugar _ 

'323 

'494 

Tobacco.'. . 

12 

20 

Soap _ _ _ 

192 

242 

Incense _ _ 

206 

230 

Rectified  alcohol _ 

5 

12 

''Articles  by  post.. _ _ 

49 

72 

Beer _ 

45 

61 

All  other  items _ 

1,734 

3, 090 

84 

147 

Liquor _ 

84 

82 

Total _ 

22, 966 

18,693 

Dates . 

54 

94 

Exports  from  Ethopia,  by  Articles,  1923  and  1924 

[In  metric  tons] 


Item 

1923 

1924 

Item 

1923 

1924 

Butter . . . . 

279 
3, 770 
1,747 
61 
220 
11 

6, 902 
742 
801 
46 

163 

7, 390 

4, 653 
160 
335 
17 

7, 642 
1,577 
664 
26 

Charcoal _ _ _ _ 

86 

382 

142 

36 

2 

177 

179 

15,  583 

61 

483 

141 

21 

1 

248 

273 

23, 855 

Harrar  coffee . 

Abyssinian  coflee  (wild) . 

Coflee  husk _ _ 

Beans,  dried . . 

Flour. . 

Drugs _ _ _ _  . 

Wax . . 

Gum,  myrrh . . . 

Ivory _ 

Articles  by  post . . .  . 

Skins  and  hides . . 

Grains . 

Seeds . 

All  other  items . 

Total _  . 

Potatoes . . . 

In  addition  to  the  preceding  export  estimates,  via  Jibuti,  an  addi¬ 
tional  table  is  here  given,  summarizing  the  exports  of  hides  (and 
skins) ,  coffee,  and  wax  by  the  same  route,  for  1922,  1923,  and  1924.  A 
comparison  will  show  a  small  but  fairly  uniform  difference.  These 
discrepancies  should  not  raise  doubts  as  to  the  authenticity  of  either 
set  of  tables,  but  rather  tends  to  give  them  mutual  support,  since  the 
figures  given  below  were  obtained  from  a  different  source. 


9 


Item 

1922 

1923 

1924 

Hides... . . . . . . . . 

Kilos 

3, 804, 406 
6, 469,  645 
259,  226 

Kilos 

7, 533, 008 
5,811, 187 
226, 762 

Kilos 

8, 686,399 
11, 590, 040 
306,  277 

Collee _ _ _ _ _ _ _ _ _ _ 

Wax _ _ _ 

TRADE  WITH  THE  INTERIOR 

The  chief  foreign  routes  of  Ethiopia,  in  addition  to  the  Franco- 
Ethiopian  Eailway,  are  as  follows:  (1)  West,  through  Gambeila,  the 
trading  station  leased  by  Ethiopia  to  the  Sudan  Government,  to 
Khartum  by  the  White  Nile;  northw^est  through  Gallabat  by  caravan 
to  Singa,  between  Eoseires  and  Sennar  on  the  Blue  Nile,  and  by 
river  to  Khartum;  Avest  to  Eoseires  and  by  the  Blue  Nile  Eiver 
to  Khartum;  (2)  south,  through  the  frontier  station  of  Moyale 
across  Kenya  Colony  to  Nairobi  and  the  port  of  Mombasa;  (3)  south, 
by  the  Juba  Eiver  through  Lugh  and  across  Italian  Somaliland  to 
the  port  of  Mogdishu;  (4)  east,  through  the  country  of  the  Ogaden 
tribes  near  the  Somaliland  frontier  to  the  ports  of  Bulhar  and  Ber- 
bera;  (5)  north,  through  Gondar  and  across  Eritrea  to  the  port  of 
Massawa;  northeast  through  Aussa  to  the  port  of  Assab. 

The  greatest  volume  of  inland  trade  is  carried  on  with  and  through 
the  Anglo-Egyptian  Sudan,  chiefly  via  the  trading  station  at  Gam¬ 
beila,  leased  to  the  Sudan  Government. 

In  comparing  this  trade  with  that  from  the  coast,  the  difficulties 
of  transit  should  be  remembered.  In  order  to  use  the  tributaries 
of  the  White  Nile  and  Blue  Nile,  goods  must  be  packed  over  rough 
country,  often  for  hundreds  of  miles,  to  very  near  the  western 
frontier  of  Ethiopia,  before  they  can  be  placed  on  river  boats  which 
connect  with  Sudan  railways  or  with  Khartum  by  water.  The 
through  water  route  is,  moreover,  interrupted  by  cascades  and  rapids, 
with  the  result  that  the  Sudan  railways  are  used  for  most  of  the 
transportation.  If  Khartum  were  connected  with  Abyssinian  cen¬ 
ters  of  production  by  rail  extensions,  the  whole  matter  would  be 
simplified. 

The  Sudan  route  for  Ethiopian  trade  is  complex  in  its  ramifica¬ 
tions,  and  what  figures  are  available  can  not  be  guaranteed  to  cover 
all  goods  passing  through  that  country  to  or  from  Ethiopia.  Unlike 
the  figures  for  Jibuti  trade,  moreover,  which  are  in  metric  tons,  the 
records  for  the  remainder  of  the  known  Ethiopian  trade  are  kept  in 
money  values. 

EXPORTS  VIA  THE  SUDAN 

In  the  following  tables,  the  exports  are  grouped  under  three  head¬ 
ings — namely,  coffee,  wax,  and  “various” — the  total  being  given  in 
Egyptian  pounds.  From  this  it  is  possible  to  arrive  at  a  rough  esti¬ 
mate  of  the  number  of  hundredweights  of  these  products  shipped 
from  Abyssinia  via  the  Sudan.  Coffee  is  by  far  the  most  important 
item.  Allowing  coffee  to  be  worth,  at  current  Aden  export  prices, 
about  $20  per  hundredweight,  and  counting  the  Egyptian  pound  to 
be  about  $5,  it  is  found  that  in  1922,  in  round  numbers,  50,000  hun¬ 
dredweight;  in  1923,  37,700  hundredweight;  and  in  1924,  56,000 


10 


hundredweight  of  Ethiopian  coffee  passed  into  and  through  the 
Sudan.  The  quantity  of  wax  for  those  years  was  relatively  small,  and 
can  not  so  easily  be  calculated,  since  prices  are  not  so  uniform  as  in 
the  case  of  coffee.  The  “  various  ”  items  include  small  quantities  of 
all  the  exports  listed  in  preceding  tables  of  exports. 

IMPORTS  VIA  THE  SUDAN 

The  imports  from  and  through  the  Sudan  are  seen  in  the  following 
tables  to  include  salt,  Sudan  products,  cotton  and  silk  fabrics,  and 
various,”  meaning  general  manufactures  from  Europe.  Textiles  are 
dominant  in  this  case,  a  value  of  about  $250,000  having  been  im¬ 
ported  from  the  Sudan  in  1922,  $300,000  in  1923,  and  $360,000  in  1924. 
An  item  of  this  importance  and  apparent  growth  is  not  to  be  over¬ 
looked.  It  is  clear,  also,  that  the  bulk  of  the  textile  imports  into 
Ethiopia,  via  the  Sudan,  are  from  Manchester.  Thus,  in  spite  of  the 
French  railway  monopoly  to  the  east,  the  British  are  gaining  head¬ 
way,  without  railways  in  Ethiopia,  from  the  west.  The  salt  and 
Sudanese  products  referred  to  in  the  table  below,  seem  to  have 
steadily  fallen  off  in  quantity.  Salt,  of  course,  comes  from  the  Bed 
Sea  coast,  but  Sudanese  products  are  expected  to  increase  when  the 
present  British  cotton-growing  campaign  in  the  Sudan  gets  into  itS' 
full  stride. 


Ethiopian  Exports  to  and  Across  the  Sudan,  and  Imports  From  and  Across 

THE  SUD.A.N  ^ 


Item 

1922 

1923 

1924 

EXPORTS 

Coffee . . . . . . . . . . 

£E207, 176 
711' 
37,  239 

£E151,018 
2, 784 
31,558 

£E225, 505 
2,562 
33,  547 

Wax . . . . . .  ...  ... 

Various  items . . . . . . . 

Total _ _ _ _ _  ...  .  .  . . .  .  . 

245, 126 

185, 360 

261,  614 

IMPORTS 

Salt  and  Sudanese  products . . . . . . . . 

16, 460 
49,  518 
17, 479 

13, 259 
60, 369 
26,  005 

9, 836 
73, 734 
27,093 

Cottons,  silks,  etc . . . . . . . 

Various  items _ _ _ _ _ _ _ _ 

Total _ _ _ _ _ 

83, 457 

99, 633 

110,663 

I  The  average  exchange  rates  for  the  Egyptian  pound  for  the  above  years  were:  1922,  $4.54;  1923,  $4.69; 
1924,  $4.53.  In  1926,  however,  the  pound  was  above  par  ($4,943)  and  was  quoted  locally  in  the  Sudan  at 
$5.02. 


ETHIOPIAN  CURRENCY 

The  Austrian  thaler  or  dollar  is  the  currency  of  Ethiopia.  Al¬ 
though  there  are  about  2,000,000  Menelik  dollars  in  circulation,  these 
are  rapidly  disappearing,  being  transmuted  into  ornaments  and 
hoarded  by  those  who  are  able  to  accumulate  wealth.  The  British 
Bank  of  Ethiopia  issues  bank  notes  for  silver  dollars  supposed  to  be 
in  its  vaults  as  guarantee,  but  the  average  native  is  suspicious  of 
banks  and  paper  money  and  will  have  nothing  but  the  copied  Aus¬ 
trian  dollar  of  1789.  These  dollars  are  still  manufactured  by 
Austrian  mints  and  are  bought  and  sold  like  any  other  article  of 
merchandise.  They  are  treated  as  money  only  in  Ethiopia,  Yemen, 
Hadramaut,  Shehr,  and  the  Arabian  Persian  Gulf  area.  There  is 


11 


in  Aden  an  English  agent  for  the  Austrian  manufacturers  of  the 
dollars,  who  is  responsible  for  their  distribution. 

In  1924  the  total  imports  of  Maria  Theresa  dollars  were  5,499,036, 
worth  at  the  current  exchange  rate  (which  varies  but  little)  of 
$0.54,  exactly  $2,969,480.  This  figure  exceeds  all  records,  imports 
having  steadily  increased  since  the  war-time  scarcity  of  silver. 

For  some  years— and  certainly  since  1918— the  Maria  Theresa 
dollars  sent  to  Ethiopia  have  not  been  permitted  to  leave  the  country. 
This  prohibition  of  reexportation  is  strictly  enforced,  although  it  is 
said  that  some  smuggling  is  practiced.  It  is  said  that  the  coins  are 
smuggled  out  of  the  country  regularly  in  the  sacks  of  grain  sent  by 
caravan,  in  soap,  and  even  under  the  coal  in  the  locomotive  tenders  of 
the  Franco-Ethiopian  Railway.  A  person  leaving  Abyssinia  is 
allowed  to_  carry  with  him  the  sum  of  five  Maria  Theresa  dollars  only. 

Smuggling,  however,  does  not  account  for  the  amazing  disappear¬ 
ance  of  the  imported  dollars  from  circulation.  There  are  probably 
not  more  than  6,000,000  or  7,000,000  of  the  coins  in  circulation  at 
present,  which  is  not  much  more  than  the  imports  in  a  single  year. 
This  disappearance  is  called  “  the  mystery  of  Ethiopia,”  even  by 
those  who  import  and  distribute  the  dollars  and  who  would  ordinarily 
be  expected  to  know  the  ultimate  fate  of  the  merchandise  they  handle. 
The  favorite  theory  is  that  each  Ethiopian  is  his  own  banker,  gather¬ 
ing  his  wealth  in  tangible  silver  and  hoarding  it  in  the  earth  from 
which  it  came.  There  are  in  Ethiopia  at  present  probably  more  than 
50,000,000  of  the  Austrian  dollars. 

TRANSPORTATION  PROBLEMS 

Transportation  in  Ethiopia  is  largely  carried  on  by  pack  horses, 
mules,  donkeys,  and  camels.  The  single  railroad,  about  495  miles  in 
length  and  connecting  Addis  Ababa  with  the  coast  at  Jibuti,  is  a 
monopoly  in  the  hands  of  the  Franco-Ethiopian  Railway  Co.,  formed 
in  1896.  Over  this  road  two  trains  a  week  are  run  in  each  direction. 

The  cost  and  difficulty  of  transportation  via  the  Sudan  has  already 
been  touched  upon.  It  is  for  this  reason  that  the  Franco-Ethiopian 
Railway  authorities  are  able  to  exact  the  high  freight  charges  for  all 
merchandise  carried  on  their  road.  In  1925  the  owners  of  the  rail¬ 
way  made  a  sweeping  increase  of  30  per  cent  in  freight  rates  from 
Addis  Ababa  to  Jibuti,  the  rates  being  made  payable  on  a  gold  basis, 
which  further  increased  the  cost  of  shipment.  This  move  created  no 
little  consternation  among  Ethiopian  exporters  of  goat  and  sheep 
skins,  since  it  was  upon  them  that  almost  the  whole  burden  fell. 
Even  at  the  old  rates  the  cost  of  railway  transport  of  skins  from 
Addis  Ababa  to  Jibuti  alone  considerably  exceeded  ocean  freight 
charges  for  the  same  skins  from  Jibuti  to  New  York.  Buyers  of 
skins  at  Jibuti  and  Aden  can  not  exceed  the  price  limits  fixed  by 
their  European  and  American  clients,  and  naturally  refuse  to  be  con¬ 
cerned  with  the  cost  of  delivery  to  the  ports.  In  the  opinion  of  the 
leaders  of  the  skin  trade  the  result  of  the  increased  freight  rates  will 
be  the  defeat  of  the  very  end  it  was  calculated  to  effect — i.  e.,  the 
increase  of  railroad  revenues — since  the  overland  transport  will  nec¬ 
essarily,  they  say,  be  diverted  to  other  carriers  and  even  to  other 
ports. 


12 


The  effects  of  hi^h  railroad  freight  rates  are  felt  not  only  in  the 
export  skin  trade,  but  in  various  import  lines  as  well.  American 
kerosene,  for  example,  which  is  sold  in  Aden  for  61^  rupees  per  case 
of  8  imperial  gallons,  can  not  be  sold  at  a  profit  in  Addis  Ababa  for 
less  than  14  rupees.  Another  case  in  point  was  a  shipment  of  1.5 
cases  of  naphthalene,  the  cost  of  which  loaded  on  the  train  in  the  port 
of  Jibuti,  French  Somaliland,  was  a  little  more  than  doubled  when 
unloaded  in  Addis  Ababa,  just  500  miles  distant.  The  same  difficulty 
applies  to  everything  shipped  into  Abyssinia  on  this  railroad  from 
Jibuti. 

CONCLUSION 

In  spite  of  this  seemingly  prohibitive  restraint  on  Ethiopian  for¬ 
eign  trade,  the  steady  growth  of  trade  since  the  war  is  apparent,  a 
fact  which  points  to  the  conclusion  that  a  very  little  competition  in 
transport  facilities  would  materially  reduce  costs.  Improved  trans¬ 
portation  of  merchandise  is  essential  to  the  commercial,  industrial, 
and  agricultural  progress  of  Ethiopia. 

In  all  probability,  therefore,  the  establishment  of  new  trade  out¬ 
lets  by  railroad  to  the  Italian  port  of  Massawa,  in  Eritrea,  or  by  a 
good  road  from  the  Harrar  region  by  Hogeisa  to  the  port  of  Berbera, 
in  British  Somaliland,  would  react  to  the  advantage  of  the  whole 
countiy.  Improved  road  construction,  which  is  already  being 
reflected  in  increased  automobile  imports  through  the  port  of  Aden, 
will  also  inevitably  hasten  the  country’s  general  economic  develop¬ 
ment. 


u.tj.  UOVlflltNMENT  1‘IUNTINU  OFIJ’ICl!;;  1927 


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